RELATED PARTY TRANSACTIONS
|9 Months Ended|
Sep. 30, 2022
|Related Party Transactions [Abstract]|
|Related Party Transactions Disclosure [Text Block]||
NOTE 4: RELATED PARTY TRANSACTIONS
Wages and bonus payable to related parties
Accruals for salary and bonuses to officers and directors are included in accrued liabilities in the balance sheets and totaled $7,216,317 and $6,653,566 as of September 30, 2022 and December 31, 2021, respectively. As part of the separation agreement with Mr. Ponce de Leon, the Company agreed to pay him all his accrued salary within two years but agreed to pay him $200,000 by November 2015 out of revenues earned. As the Company did not earn revenue in 2015 and as at September 30, 2022 has still not earned revenue, the obligation to Mr. Ponce de Leon of $1,864,599 is currently in default and the amount includes $637,885 in accrued interest. It is the Company’s intention to pay Mr. Ponce de Leon immediately upon receiving revenue.
As of September 30, 2022 and December 31, 2021, the Company had outstanding short-term convertible notes payable of $9,826,445 and $9,779,145, net of unamortized discounts of $682 and $40,200, respectively and outstanding long-term convertible notes payable of $48,290 and $95,590, net of unamortized discounts of $0 and $1,663, respectively. The convertible notes are secured by assets and the common stock of the Company, bear interest at 12% per annum, are convertible into shares of the Company’s common stock at $0.06 to $0.15 per share and are due three years from the dates of issuance. Amortization expense related to debt discounts on convertible debt for the nine months ended September 30, 2022 and 2021 was $41,181 and $470,765, respectively.
During the nine months ended September 30, 2022, the Company borrowed a total of $428,866 and repaid $10,000 in cash from an entity controlled and owned by a significant shareholder of the Company. The borrowings are unsecured, bear no interest and are due on demand. As of September 30, 2022 and December 31, 2021, the balance on the borrowings was $846,336 and $730,050, respectively. During April 2022, the holder elected to convert $302,580 in principal and $40,301 in accrued interest, or a total of $342,881 into 857,204 shares of the Company’s common stock at $0.40 per share, the market price on the date of conversion.
As of September 30, 2022 and December 31, 2021, the Company had outstanding advances payable to an officer of the Company of $83,180 and $83,180, respectively.
As of September 30, 2022 and December 31, 2021, the Company had outstanding notes payable of $705,000 and $705,000, respectively, to an individual that is a significant shareholder.
No definition available.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef